Successful Launches of J’den, Hillock Green, and Watten House Drive November Rebound in Private Home Sales
November witnessed a significant rebound in Singapore’s private home sales, driven by the successful launches of suburban condominiums – J’den in Jurong East, Hillock Green in Lentor Central, and the luxury prime district project Watten House. The surge in sales, up 286% from October to a four-month high of 784 units, was attributed to pent-up demand resulting from the absence of new launches in the preceding months.
Key Highlights:
- Project Contributions: The three newly launched projects collectively accounted for nearly 73% of November’s overall sales, with a year-on-year increase of threefold.
- J’den’s Benchmark: J’den by CapitaLand Development, with its 368-unit offering, set a new benchmark median price of $2,475 per square foot (psf) for suburban private housing projects. Analysts noted pent-up demand in Jurong East and the growth potential of Jurong Lake District as contributing factors.
- New Units: Excluding executive condominiums (ECs), developers released 970 new units for sale in November, with J’den, Hillock Green, and Watten House constituting 97% of the total units launched.
- Sales Breakdown: In November, the suburban submarket led sales, with transactions soaring to 539 units, primarily influenced by J’den. The $1.5 million to $2 million price bracket dominated sales, constituting 28% of the total.
- Watten House Success: Despite concerns about the impact of cooling measures, Watten House in Shelford Road exceeded expectations, with 109 out of 180 units sold at a median price of $3,199 psf during its preview in November.
- 2023 Overview: Despite the November rebound, 2023 is expected to finish with the lowest new home sales since 2008. Sales in the first 11 months fell 9.6% to 6,316 units, reflecting a decline in sentiment due to higher interest rates, softer economic prospects, and cooling measures.
- Outlook for 2024: Analysts anticipate a subdued market sentiment in the first half of 2024 due to worries about job security, elevated interest rates, and slowing global growth. However, a potential silver lining is the possibility of easing interest rates, which could lower borrowing costs for homebuyers.
- Upcoming Launches: Developments slated for launch in January 2024 include city fringe projects like The Arcady @ Boon Keng and The Hillshore in Pasir Panjang, suburban condos Hillhaven in Hillview Rise and Lentoria in Lentor Hills Road, and Lumina Grand EC in Bukit Batok.
While a slew of new launches is expected in 2024, the market sentiment remains cautious, and the situation may improve in the second half of the year if economic conditions and interest rates become more favorable.
